OrthoPediatrics (NASDAQ:KIDS – Get Free Report) and Edwards Lifesciences (NYSE:EW – Get Free Report) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.
Analyst Recommendations
This is a breakdown of recent recommendations for OrthoPediatrics and Edwards Lifesciences, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OrthoPediatrics | 1 | 1 | 8 | 1 | 2.82 |
| Edwards Lifesciences | 0 | 9 | 16 | 3 | 2.79 |
OrthoPediatrics currently has a consensus price target of $24.44, suggesting a potential upside of 37.25%. Edwards Lifesciences has a consensus price target of $95.65, suggesting a potential upside of 11.27%. Given OrthoPediatrics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe OrthoPediatrics is more favorable than Edwards Lifesciences.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OrthoPediatrics | $236.35 million | 1.94 | -$39.65 million | ($1.68) | -10.60 |
| Edwards Lifesciences | $6.07 billion | 8.16 | $1.07 billion | $1.88 | 45.73 |
Edwards Lifesciences has higher revenue and earnings than OrthoPediatrics. OrthoPediatrics is trading at a lower price-to-earnings ratio than Edwards Lifesciences, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
69.1% of OrthoPediatrics shares are owned by institutional investors. Comparatively, 79.5% of Edwards Lifesciences shares are owned by institutional investors. 32.7% of OrthoPediatrics shares are owned by company insiders. Comparatively, 0.3% of Edwards Lifesciences shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility and Risk
OrthoPediatrics has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Edwards Lifesciences has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Profitability
This table compares OrthoPediatrics and Edwards Lifesciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OrthoPediatrics | -16.31% | -7.01% | -4.86% |
| Edwards Lifesciences | 17.39% | 15.19% | 11.71% |
Summary
Edwards Lifesciences beats OrthoPediatrics on 11 of the 15 factors compared between the two stocks.
About OrthoPediatrics
OrthoPediatrics Corp., a medical device company, engages in designing, developing, and marketing anatomically appropriate implants, instruments, and specialized braces for children with orthopedic conditions in the United States and internationally. The company offers pediatric trauma and deformity correction products; scoliosis procedures for the treatment of spinal deformity; and sports medicine and other products. Its products comprise PediLoc, PediPlates, cannulated screws, PediFlex nail, PediNail, PediLoc Tibia, ACL Reconstruction System, Locking Cannulated Blade, Locking Proximal Femur, Spica Tables, RESPONSE Spine, BandLoc, Pediguard, Pediatric Nailing Platform | Femur, Devise Rail, Orthex, The Fassier-Duval Telescopic Intramedullary System, SLIMTM Nail, The GAP Nail, The Free Gliding SCFE Screw System, GIROTM Growth Modulation System, PNP Tibia System, ApiFix Mid-C System, and Mitchell Ponseti. The company serves pediatric orthopedic market, as well as pediatric orthopedic surgeons and caregivers. OrthoPediatrics Corp. was founded in 2006 and is headquartered in Warsaw, Indiana.
About Edwards Lifesciences
Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL PRECISION and Cardioband names. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; INSPIRIS RESILLA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valves conduit for complex combined procedures; and MITRIS RESILIA valve. In addition, it offers critical care solutions, including hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings under the FloTrac, Acumen IQ sensors, ClearSight, Acumen IQ cuffs, and ForeSight names; HemoSphere, a monitoring platform that displays physiological information; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.
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